16Hit1600
Advanced MathHardValue after two years of 10% growth

Advanced Math practice question

An account holds $500 and grows by 10% each year, compounded annually. How much is in the account, in dollars, after 2 years?

Answer: 605

500 × 1.1² = 605.

Common wrong answers

If you answered 550
550 is after one year.
If you answered 600
600 adds $50 twice, ignoring compounding.
If you answered 665.5
665.5 is after three years.

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